Golden Breakout: Bullion Surges Beyond $2150 in Impressive Rally

Published on Dec 04, 2023 13:12

Gold achieved a long-awaited breakout, surging beyond $2150 an ounce in a rally that gained momentum during Asia`s electronic trades. The nearly 3% jump surpassed the previous all-time high set on Aug. 7, 2020. The rally, initiated in early October, received a boost on Friday when comments from Fed Chair Jerome Powell about monetary policy being "well into restrictive territory" triggered a dollar and Treasury yield plunge, favoring non-interest-bearing gold. Powell, however, cautioned against premature rate-cut expectations. Still, markets now indicate a more than 50% chance of a reduction in March, fully pricing in a cut in May. The MCX February expiry contract crossed Rs 64000 per 10 grams, trading up Rs 295.